Cboe BZX seeks SEC nod to enable staking for 21Shares Ethereum ETF

The Cboe BZX Exchange, Inc. has submitted a proposal to enable staking for the 21Shares Core Ethereum exchange-traded fund (ETF).

In a Form 19b-4 filed, the exchange requested approval to stake ether held within the fund and now awaits a response from the U.S. Securities and Exchange Commission (SEC).

According to the filing, “the Exchange proposes to amend several portions of the Eth ETP Amendment No. 2, as amended, to allow the staking of Ethereum held by the Trust,” citing discussions with the ETF’s sponsor.

Ethereum surges 6% as 21Shares seeks SEC approval for ETF staking

Ethereum’s Ether surged on Wednesday following news that the Cboe exchange and 21Shares filed a request with the Securities and Exchange Commission (SEC) to permit staking for the ether held in the 21Shares Core Ethereum exchange-traded fund (ETF).

The announcement triggered a nearly 6% spike in Ether’s price within 30 minutes, reaching a high of $2,782.

Bloomberg Intelligence ETF analyst James Seyffart noted that this is the first time an ETF filing with the SEC has incorporated staking.

“Assuming this is acknowledged by the SEC (I’d probably make that assumption right now, but you never know),” Seyffart said in a post on X.

The SEC and others, including BlackRock and Fidelity, approved the 21Shares Core Ethereum ETF last year. Several firms removed staking from their registration statements ahead of the agency’s sign-off. The agency, under former SEC Chair Gary Gensler, had previously said proof-of-stake tokens are securities. 

With the new administration, the SEC is expected to take a friendlier stance on crypto. The Trump administration has created a crypto task force with plans to classify some tokens as “non-securities.”

SEC commissioner Peirce pushes for Ethereum ETF staking as new leadership takes over

Less than two months ago, Securities & Exchange Commission (SEC) Commissioner Hester Peirce discussed her optimism about upcoming regulatory changes as the agency transitions to new leadership under President Trump’s pick for new Chair, Paul Atkins.

Peirce had highlighted the potential for revisiting in-kind redemptions in crypto exchange-traded funds (ETFs) and enabling Ethereum ETFs to begin staking.

According to an interview with Coinage, SEC Commissioner Hester Peirce shared her views concerning the potential upcoming changes at the agency under Trump’s pick, Paul Atkins. 

She described this period as a transitional one, which was clearly visible and also filled with hope because of the coming of the new Chair. 

Peirce stated her hopes to unscramble two key SEC decisions in the crypto ETF space: in-kind redemptions and making it legal for Ethereum ETFs to start staking. 

These changes, which were very unlikely to be approved during the tenure of the outgoing Chair, Gary Gensler, now seem more feasible.

Ethereum ETFs allow investors to hold ETH but not stake it, meaning ETF holders miss out on Ethereum’s staking yield.

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